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The Predictive Discovery Ltd (ASX: PDI) share price has jumped out of the starting blocks today with the company’s shares now trading at 19.5 cents apiece.

The Guinea-based miner has clawed back 15% of the losses it gave away yesterday after a horrendous start to the week. The company’s share price had tanked 28% before today’s open.

Why is the Predictive Discovery share price up 15%?

While there’s been no market sensitive information for the company today, Predictive Discovery’s shares have certainly rebounded from yesterday’s sell-off.

Then, its shares crashed from 23.5 cents to close at 17 cents yesterday after coming out of a requested trading halt a day earlier.

Specifically, the sell-off came after the company released an update on its Bankan Project in Guinea.

According to Predictive, it was made aware of a media report that calls into question the legality of its mining operations in the West African nation.

The company’s statement notes the media report claims that two of the company’s permits, the Kaniko and Saman permits, lie within the outer zone of the Upper Niger National Park.

This is apparently a restricted area for mining activities. However, the company notes there are certain exemptions that can be granted through the Guinean ministerial cabinet.

As such, Predictive’s managing director Paul Roberts said the company is working with Guinean authorities to ensure it is fulfilling its environmental responsibilities.

Despite this, investors were spooked yesterday and left the Predictive Discovery party fairly quickly after the company’s update.

Predictive Discovery has since ensured all of its gold mining operations remain compliant. The company also said it has been in regular discussions with the Guinean mining regulator on its ESG planning.

With this news, investors appear to have regained confidence in Predictive’s shares today.

Nonetheless, the Predictive Discovery share price has slipped 25% into the red this past wee, after closing at its 5-year high of 26 cents on 5 October.

Predictive Discovery share price snapshot

Despite the turbulence this week, the Predictive Discovery share price has climbed around 65% in the last month and is up 211% this year to date.

This extends its gain in the last 12 months to 201%, well ahead of the S&P/ASX 200 Index (ASX: XJO)’s return of around 25% in this time.

The post Predictive Discovery (ASX:PDI) share price leaps 15% following sell-off appeared first on The Motley Fool Australia.

More reading

• Why Ansell, Predictive Discovery, Strike Energy, & Zip shares are sinking
• Why the Predictive Discovery (ASX:PDI) share price is crashing 34% today
• Why the Predictive Discovery (ASX:PDI) share price is in a trading halt
• Why is the Predictive Discovery (ASX:PDI) share price falling today?
• Predictive Discovery (ASX:PDI) share price rockets 13% following investor update

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Commonwealth Bank of Australia (ASX: CBA) shares are dipping in early afternoon trade, down 0.59%.

The S&P/ASX 200 Index (ASX: XJO), meanwhile, has managed to pull back from earlier losses and is currently up 0.77%.

Below we take a look at a few highlights from CommBank’s 2021 Annual General Meeting (AGM).

What did CommBank’s Chairman say at the AGM?

Matt Comyn, CommBank’s CEO, and Catherine Livingstone, CBA’s Chairman, both presented at the AGM.

Livingstone commenced, noting that the bank, established early in the 20th century, was intended to be for all Australians.

She said, “This role has never been more relevant than over the past year, with CBA having supported thousands of individual and business customers impacted by COVID-19.”

Livingstone also noted the move to online transactions since early 2022:

Over the course of the pandemic, our customers have embraced digital banking in record numbers, which has helped us tailor our support, and improve our understanding of individual needs.

Then there is the ever-growing emphasis on sustainability. According to Livingstone:

We recognise that commercial, environmental and social outcomes are interconnected, and that balancing the interests of stakeholders involves achieving positive outcomes in all dimensions.

During the past year, we have strengthened our approach to sustainability, including updating our Environmental and Social Framework, which sets out, for our people, as well as our stakeholders, the standards we have set.

On the financial end of the spectrum, Livingstone pointed out:

Cash net profit after tax was up 19.8 per cent on the prior year, reflecting an improvement in economic conditions, and the strong operating performance of our core banking businesses.

During the year, the Bank continued its program of divestments of non-core businesses, in line with its strategy to become a simpler bank. The divestment program has now generated $6.2 billion of excess capital since it began in 2018.

She also addressed the bank’s $6.2 billion of dividends paid out over the past financial year, and CBA’s off-market share buy-back, which returned another $6 billion to CBA shareholders.

What did CommBank’s CEO say at the AGM?

Matt Comyn, addressing the financial end, said, “A deliberate and sustained focus on customers, digital engagement and operational excellence helped us grow operating income by 2 per cent, reflecting above-system growth in home and business lending, and deposits.”

He noted that the bank lent $11 billion more to businesses than it did in FY20, with better overall economic conditions leading to “significantly” lower loan impairment expenses.

Looking ahead, Comyn said there’s reason to be optimistic:

The stimulus provided by our governments during lockdowns has been doing its job. Australians continue to accumulate more savings and many businesses are ready to take advantage of opportunities ahead.

Housing activity is still strong. We are continuing to monitor this closely and adjust our lending settings appropriately. Finally, we’re seeing digital technology enable a raft of changes, which come with both opportunities and risks.

If you’d like to view the webcast of the AGM, you can do so here.

How have CBA shares been moving?

CBA shares are up 24% year-to-date, compared to a gain of 9% posted by the ASX 200.

Over the past month, shares in the big bank are up 3%.

The post Own CBA (ASX:CBA) shares? Here are the highlights from the bank’s AGM appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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At lunch on Wednesday, the S&P/ASX 200 Index (ASX: XJO) is fighting hard to stay in positive territory. The benchmark index is currently up 0.1% to 7,287.3 points.

Here’s what is happening on the ASX 200 on Wednesday:

Bank of Queensland shares fall on FY 2021 results

The Bank of Queensland Limited (ASX: BOQ) share price is tumbling lower today following the release of its full year results. For the 12 months ended 31 August, the regional bank reported an 83% increase in cash net profit after tax to $412 million. This was driven by a 13% increase in total income to $1.26 billion and its improving net interest margin (NIM). While this was in line with expectations, its outlook appears to have spooked investors. Management warned that it expects its “NIM to decline by c.5-7bps in FY22, as competition continues and the low interest rate environment remains.”

A2 Milk shares surge higher

It has been a very good day for the A2 Milk Company Ltd (ASX: A2M) share price. The struggling infant formula company’s shares are surging higher following the release of an update from one of its smaller rivals Bubs Australia Ltd (ASX: BUB). This morning Bubs reported a 96% year-on-year increase in gross revenue to $18.5 million. This appears to have sparked hopes that the tough times are now behind the infant formula market.

Zip shares downgraded

The Zip Co Ltd (ASX:Z1P) share price is pushing higher despite being downgraded by a leading broker. According to a note out of Citi, its analysts have downgraded the company’s shares to a neutral rating from buy. The broker has also cut its price target by 7% to $7.40. Citi made the move to reflect falling app downloads in the key US market.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Wednesday has been the A2 Milk share price with an 8% gain. This follows the update from Bubs this morning. The worst performer has been the Bank of Queensland share price with a 4% decline following its FY 2021 results release.

The post ASX 200 (ASX:XJO) midday update: BOQ results, A2 Milk shares jump appeared first on The Motley Fool Australia.

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• Own ASX BNPL shares? World Payments Report delivers insights into future of sector
• Why the A2 Milk (ASX:A2M) share price is surging 8% higher today
• Bank of Queensland (ASX:BOQ) share price tumbles 4% on FY 2021 results
• Zip (ASX:Z1P) share price on watch after broker downgrade
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended ZIPCOLTD FPO. The Motley Fool Australia has recommended A2 Milk and BUBS AUST FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The PointsBet Holdings Ltd (ASX: PBH) share price is up 4.45% to $10.09 per share in morning trade.

Shares in the corporate bookmaker are gaining even as the S&P/ASX 200 Index (ASX: XJO) is again struggling. The ASX 200 is currently up 0.12% after earlier trading in the red.

Below we take a look at the latest news for the company.

What’s going on in Canada?

The company reported that PointsBet Canada has entered into an agreement to become the exclusive sports betting partner of Curling Canada. PointsBet Canada is a 100% owned subsidiary of PointsBet Holdings. However, this is non-price sensitive news, unlikely to have a material impact on the PointsBet share price.

According to the release, more than 13 million viewers tune in to Curling Canada’s events every season. That ranks it among the highest-rated sports programming in the country.

What’s more, the agreement includes complete category exclusivity covering the company’s Sports Book and Online Casino for all Curling Canada event broadcasts.

Curling Canada’s CEO, Katherine Henderson, commented on the agreement:

With the passing of legalised sports betting by the federal government this past summer, we knew that there would be many opportunities available for our sport to be part of a new, legal and regulated way for fans to enjoy our events.

PointsBet’s track record speaks for itself, as the company has existing partnerships with a variety of highly regarded partners around the world…

PointsBet Canada’s CEO, Scott Vanderwel, added:

Our partnership with Curling Canada will not only support community-based sports but bring curling fans who, our research shows, are active bettors and over-index when compared to fans of other sports, an unprecedented sports betting experience.

PointsBet expects to launch operations in Ontario in the first quarter of 2022, pending regulatory approvals.

PointsBet share price snapshot

The PointsBet share price has struggled so far in 2021, down 13% year to date. That compares to a gain of 9% posted by the ASX 200.

However, PointsBet shares are up just over 2% over the past month.

The post PointsBet (ASX:PBH) share price lifts following Canada update appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Investing in ASX-listed buy now, pay later (BNPL) shares has been quite rewarding for investors over the last few years.

For example, Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) have delivered returns of 677% and 539% respectively. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has climbed a relatively paltry 23.5% (before dividends) in comparison.

What was once a downtrodden niche payment option has fast become a rapidly growing payment megatrend used by merchants around the world. As the market opportunity has ballooned, many more BNPL competitors have entered the fray, each putting their own spin on the new payment method.

This leaves investors wondering what the future of ASX BNPL shares could look like? Is the market now saturated with options? Is there any growth left in the sector and will the banks be challenged?

In addressing some of these questions, we take a look at the recently released Capgemini World Payments Report for 2021.

Where lies the future?

It has been 18 months of unprecedented events which have vastly changed the payment landscape in various ways. As a side effect, merchants of all sorts were pushed towards digital options in a bid to survive the challenging environment.

This is supported by the substantial merchant uptake in Afterpay’s services during FY21. During the financial year, Afterpay experienced a 77% increase in active merchants, reaching 98,200.

According to the World Payments Report, similar growth could still be ahead for these new payment companies. Additionally, the report notes there is growing consumer demand for convenient payments.

On the merchant side, retailers require instant payment confirmation, seamless cross-border transactions, and smooth reconciliations.

However, how much growth could still be in front of companies operating in the BNPL industry? Well, BNPL adoption is expected to grow at 28% CAGR [compounded annual growth rate] over the next five years.

This possibly explains why the market has become inundated with newcomers. Australian fintech startups must now compete on the world stage with the likes of Affirm Holdings Inc (NASDAQ: AFRM) and whatever BNPL product Apple Inc (NASDAQ: APPL) cooks up with Goldman Sachs.

Furthermore, the World Payments Report highlights that the COVID-19 pandemic has accelerated the adoption of next-gen payment options. Despite this, next-gen retail non-cash transactions still hold a relatively small share of all payments. As such, Capgemini expects a large runway of adoption ahead for BNPL.

Could ASX BNPL shares disrupt the banks?

Following Square‘s (NASDAQ: SQ) proposed acquisition of Afterpay, many investors have been wondering whether the traditional banks could be disrupted by these large fintechs.

Leading Australian banks — Australian and New Zealand Banking Group Ltd (ASX: ANZ), Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), and Westpac Banking Corp (ASX: WBC) — took in $1.7 billion in revenue from payments and credit cards in FY21. It is estimated that up to 45% of this income is under threat from BNPL disruptors and tech behemoths.

Adding to this, around 75% of consumers aged 30 years or younger use credit cards less than 20 times a year, but are interested in using BNPL offerings. This demonstrates an evolving shift in consumer habits which leans towards the benefit of ASX BNPL shares.

Likewise, merchants are attracted to the BNPL proposition, as data indicates improved sales metrics upon implementation. A focus group showed merchants witnessed a 20% to 30% rise in conversion and a 50% to 80% increase in order value using BNPL.

However, the rise in BNPL may not be a stake to the heart of banking incumbents either. Global head of cash management at Standard Chartered Bank Philip Panaino states:

As the payment ecosystem expands, banks must foster symbiotic relationships with market players. Opportunities around co-creation, co-innovation, and value creation are enormous. But finding the sweet spot matters most. When non-banks develop value-added payment capabilities, incumbents should focus on expediting innovation, shortening development timeframes, and connecting the dots.

Perhaps the future entails a swathe of complementing products and services between BNPL companies and banks.

The post Own ASX BNPL shares? World Payments Report delivers insights into future of sector appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler owns shares of AFTERPAY T FPO, Apple, and Commonwealth Bank of Australia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Affirm Holdings, Inc., Apple, Square, and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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There is a group of ASX shares that have been rated as buys by multiple brokers.

These brokers are always on the lookout for new opportunities that could be good value. Share prices change all the time, so it can change whether a business is possibly a buy or not.

If many brokers all like the same stock then it could be an opportunity to consider. However, it is possible that all of those brokers are simultaneously wrong.

With that in mind, here are two ideas:

Newcrest Mining Limited (ASX: NCM)

Newcrest is one of the world’s biggest gold miners. It is currently rated as a buy by at least five brokers.

One of the brokers that currently likes Newcrest Mining is Morgan Stanley, with a price target of $30. The broker likes the company’s recent announcement about its investing and growth plans.

The ASX share said there are attractive economics and significant value creation across its plans for Cadia and Havieron in Australia, Red Chris in Canada and Lihir in Papua New Guinea.

All four organic growth options have the ability to deliver internal rate of returns of at least 16%. It’s also projected to reduce the group all-in sustaining cost (AISC) by more than 50% from the current levels by FY30.

There is also “significant” upside potential with growth optionality beyond the stage 1 project parameters as well as “exploration upside”.

It’s expecting 37% growth in expected copper production by FY30, sourced exclusive from tier 1 jurisdictions, like Australia.

Morgan Stanley’s projection, puts the Newcrest share price at 24x FY22’s estimated earnings.

Telstra Corporation Ltd (ASX: TLS)

The telco giant is another ASX share that is highly rated by brokers at the moment. It’s currently rated as a buy by at least four brokers.

One of the brokers that likes Telstra is Morgan Stanley, which has a price target of $4.50 on the business.

Morgan Stanley points to the financial targets that Telstra has released some financial information about its T25 strategy.

It said that the 5G network coverage is going to be extended to 95% of the population, with regional coverage to be expanded with 100,000sq km of new 4G and 5G coverage.

To 2025, the ASX share is targeting a compound annual growth rate of mid-single digit underlying earnings before interest, tax, depreciation and amortisation (EBITDA) and a high-teens growth rate for underlying earnings per share (EPS).

Telstra is also targeting another $500 million of net fixed cost reductions from FY23 to FY25.

The company also said that it’s looking to maximise the fully franked dividends for shareholders, whilst seeking to grow them over time.

Using Morgan Stanley’s earnings estimates, the Telstra share price is valued at 28x FY22’s estimated earnings.

The post 2 ASX shares rated as strong buys by brokers appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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ASX uranium shares are surging across the board on Wednesday following a bullish overnight session for uranium.

ASX uranium shares jump double-digits on open

The largest ASX-listed uranium player, Paladin Energy Ltd (ASX: PDN) is currently up 18.4% to 87 cents. After ceasing operations at its “globally significant” Langer Heinrich mine in 2018, the company is looking to restart operations to take advantage of the improving uranium market.

Advanced uranium explorer Deep Yellow Limited (ASX: DYL) is up 16.2% to $1.05. The company has been carrying out exploration activities at it Tumas Project since 2016, and during that time, has expanded its resource by more than threefold. Deep Yellow is targeting the completion of its definitive feasibility study in the latter part of 2022.

On the speculative end of town, players such as Bannerman Energy Ltd (ASX: BMN), Lotus Resources Ltd (ASX: LOT), Vimy Resources Ltd (ASX: VMY) and Alligator Energy Ltd (ASX: AGE) are also joining in on the buying frenzy, surging between 15% and 25%.

What’s driving the uranium sector?

Overnight, the Global X Uranium Exchange Traded Fund (ETF) surged 11.65% to US$26.92. The ETF is now within an arms reach of its previous 7-year high of US$28.72.

This move comes off the back of its highest volume day since inception, with over 6.1 million shares traded.

To add some perspective, its 10-day average volume currently sits at around 2.2 million shares.

50% of the fund is allocated towards Canadian players, including the world’s largest listed uranium player Cameco.

The fund also has its fair share of exposure of ASX-listed players including Paladin Energy, Boss Energy Ltd (ASX: BOE), Bannerman Energy, Deep Yellow and more.

The strong capital inflows into the uranium ETF signal a renewed level of investor interest after its September peak.

Investors might want to keep an eye out for Sprott Asset Management and its Twitter for any updates about buying more uranium off the spot market.

The post Here’s why ASX uranium shares are booming double digits across the board on Wednesday appeared first on The Motley Fool Australia.

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• Why ASX uranium shares are bouncing back on Friday
• What’s going on with the Deep Yellow (ASX:DYL) share price today?
• Deep Yellow (ASX:DYL) share price slides 4% despite major ore reserve milestone
• Which ASX 300 shares are on the move for the start of the week?

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The A2 Milk Company Ltd (ASX: A2M) share price has been a very strong performer on Wednesday.

In morning trade, the infant formula company’s shares are up 8.5% to $6.30.

Why is the A2 Milk share price surging higher?

The catalyst for the rise in the A2 Milk share price on Wednesday has been the release of an update from one of its smaller rivals.

This morning Bubs Australia Ltd (ASX: BUB) surprised the market by releasing its first quarter update well ahead of its usual release date.

It appears as though the company could not wait to reveal just how much its performance has improved in FY 2021. After delivering a host of very disappointing quarterly updates over the last 12 months, Bubs has returned to form at last.

For the three months ended 30 September, Bubs reported a 96% year-on-year increase in gross revenue to $18.5 million. This was also an increase of 45% from the fourth quarter of FY 2020 and 30% from the first quarter of FY 2019.

Bubs Founder and CEO, Kristy Carr, commented: “Bubs has largely put the disruption and challenges of COVID-19 behind us, delivering a turnaround to high growth during the quarter as we revamped our business strategy in response to the rapidly changing market dynamics.”

What’s driving this growth?

A key driver of this growth was its China business. Sales across the Chinese Daigou, CBEC and General Trade channel increased 156% over the prior corresponding period to $9.8 million.

This has sparked hopes that the tough times are now behind the infant formula market, which goes some way to explaining why the A2 Milk share price is performing so positively today.

However, it is worth remembering that A2 Milk and Bubs are two very different companies. With quarterly sales of just $18.5 million, it doesn’t take much to move the needle for Bubs.

Though, investors won’t have to wait long to find out if A2 Milk’s sales are improving. In just a touch over a month the company is due to hold its annual general meeting. Management traditionally provides an update on its performance and outlook at these events.

No doubt all eyes will be on the A2 Milk share price that day.

The post Why the A2 Milk (ASX:A2M) share price is surging 8% higher today appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk and BUBS AUST FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Adriatic Metals Plc (ASX: ADT) share price is currently in a trading halt after the company requested the pause before the open today.

Adriatic requested the halt to announce a proposed project finance package regarding its Vares Silver project.

Yesterday, the Adriatic share price closed at $3.33 after gaining 4%.

Here’s what we know out of the base metals explorer’s camp today.

What was announced?

Adriatic advised it has proposed a project finance package to fund the construction of its flagship Vares Silver project.

The announcement comes after Adriatic completed a definitive feasibility study (DFS) on the site in August.

The package is comprised of an agreement between Adriatic and Orion Resource Partners LLP of the UK. The pair have signed a term sheet for US$142.5 million debt financing.

Specifically, this is made up of a US$120 million senior secured debt facility and, curiously, a “US$22.5 million copper stream”.

Aside from the debt financing, Adriatic also intends to complete a US$102 million equity raise. This will consist of a conditional placing to raise US$52 million and a “conditional equity subscription for US$50 million by Orion at the placing price”.

The placing price is proposed at 1.5174 pounds per new share, “representing a discount of approximately 10.7% to the 10-day volume weighted average price on the ASX to 12 October 2021”.

Combined, the company intends to raise gross US$244.5 million (A$332.9 million) to finance construction of its Vares site in Bosnia & Herzegovina. It expects to take a net US$97.8 million from the round.

In conjunction with the proposed capital raise, fellow ASX resources share Sandfire Resources Ltd (ASX: SFR) announced today that it intends to sell its entire Adriatic stake.

According to Sandfire, Adriatic has not put up any objections to its intended divestment.

Adriatic Metals share price snapshot

The Adriatic Metals share price has gained 42% this year to date, extending its gain over the past 12 months to 48%.

It’s rallied 11% in the last month and has climbed a further 10% into the green in the past week.

These gains have been propped up by strengths in the broader commodity markets Adriatic has exposure to.

These results have outpaced the S&P/ASX 200 Index (ASX: XJO)’s return of around 20% in the last year.

The post Why is the Adriatic Metals (ASX:ADT) share price halted? appeared first on The Motley Fool Australia.

More reading

• Sandfire Resources (ASX:SFR) share price fizzles after sale of Adriatic Metals stake
• Why has the Adriatic Metals (ASX:ADT) share price leapt 11% in a month?
• 2 ASX shares set to double in the next year

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Digital Wine Ventures Ltd (ASX: DW8) share price is in the freezer in preparation for a major acquisition and capital raise.

The company is expected to announce news of its latest addition and equity boost sometime between now and Friday.

Until then, the Digital Wine share price will stay halted at its previous closing price of 6.6 cents.

The wine distributor and operator of wholesale distribution platform, WINEDEPOT, is no stranger to acquisitions. Let’s take a look at Digital Wine’s most recent acquisition and capital raise.

Digital Wine share price freezes over

The Digital Wine share price has been put on ice this morning ahead of the company announcing a new acquisition and capital raise.

Unfortunately, market watchers eager for more details might be waiting until Friday. If the company doesn’t release the announcement by then, its shares will resume trading as per normal.

Though, it hasn’t been that long since Digital Wine graced the market with news of its most recent acquisition and capital raise.

In July the company acquired Parton Wine Group. While Digital Wine’s consideration for Parton is through earn-outs via scrip, the company still raised $7.5 million.

Around $7.38 million was raised through a share placement for institutional and sophisticated investors. Within the placement, Digital Wine offered new shares for 6.5 cents apiece. The leftover $125,000 came from director participation.

Of the $7.5 million, $2.8 million was to pay Parton’s existing liabilities and $1.2 million to repay Parton’s debt. Another $1 million would fund Parton’s planned projects. The remaining $2.5 million went towards expanding the merged logistics business.

At the time, the 6.5 cent price tag represented a 28.6% discount to Digital Wine’s last traded share price and a 20% discount to its 15-day volume weighted average price.

Unfortunately, the market reacted poorly to Digital Wine’s most recent acquisition and capital raise. Digital Wine’s stock was frozen in preparation for the news, as it is today. It fell 11% when it emerged.

So, it’s safe to say that plenty of eyes will be fixed on the Digital Wine share price between now and Friday morning.

The post Why is the Digital Wine (ASX:DW8) share price on ice? appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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